An Analysis of Loan Utilisation and Socio-Economic Determinants Among Self-Help Groups Members (SHGS)

Self-help groups (SHGs) have emerged as essential tools for boosting financial inclusion, economic empowerment, and sustainability, particularly in rural areas. These groups empower women to become financially independent and encourage their active participation in diverse opportunities. The study examines the relationship between socio-economic variables and loans borrowed by self-help group members. The study used data from 450 respondents across three districts to assess loan utilisation, borrowing patterns, and the association between socio-economic factors and loans borrowed. The analysis was conducted using SPSS version 2025, employing a χ2-test and descriptive statistics. The findings indicated that most self-help group members borrowed loans exceeding$ 50,000, primarily for agricultural purposes, and benefited from timely disbursements. The study also revealed that borrowed loans were significantly associated with personal income, household income, and expenditure, although no significant association was found with savings. The findings emphasise the value of sustainable agricultural investment, saving practices, and the role of self-help groups in enriching women's empowerment and promoting rural economic development.